|
PureBytes Links
Trading Reference Links
|
In response to the Stop and Reverse method of trading, I find it a very
profitable way to trade. You get a good basket of stocks, and stay fully
invested both long and short. Stocks tend to favor one direction or the
other, so half the time you are making money, and the other half your losing
a small amount, but, if you use stops on the downside and trailing stops
with your winners, you can consistently make profits. If you diversify
across many stocks, you can even out your returns and reduce risk. The
problem with scanning for setups is most breakouts are unpredictable and you
miss most of those, but if you're fully invested with buy and sell stops
(for changes in direction) you are always in on big moves, and you profit in
both bear and bull markets.
For taking profits, using a trailing stop right under the low (or high) of
the previous bar (daily, weekly...) is a good system for catching and
holding big moves. Dave D.
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of L1L2L3L4L5@xxxxxxxxxx
Sent: Aug 29, 2001 6:14 PM
To: metastock@xxxxxxxxxxxxx
Subject: Re: STVBO System
On Sun, 26 August 2001, "Hengy" wrote:
>
> I'm working on coding a short term volatility breakout system but am
having
> trouble deciding on a method for taking profits. Because this system
trades
> often for small amounts I would like to eek out as much as possible on
each
> trade. I could work with profit targets but am afraid of leaving too much
> on the table. Anyone have any suggestions? ************REPLY
SEPERATOR**************************** *****************IN THIS E-MAIL REPLY:
Hengy, some very successful traders use STOP AND REVERSE,whether it be on
volatility breakout systems or on contratrend systems.This way they are
always in the market -alternating from LONG to SHORT..... Maybe you are
aware of this already but I thought I'd mention it since some very
successful traders regularly trade this way. Len.
(The Disclaimer:All this is for educational entertainment only and does not
in any shape or form constitute advice of any sort.)
__________________________________________________________
Get your FREE personalized e-mail at http://www.canada.com
|